Wednesday, October 10, 2012

SPX - Just a pullback? Or...?

click on chart to enlarge

2 comments:

  1. sp'1300 within October, really?

    ..and there I was thinking 1420/00 was bold for the next few days.
    --

    I've seen a few tout 1375 or so - thats the Oct'2011 trend/channel.. but even that seems too far.

    Today's flat VIX doesn't exactly inspire me to believe <1400s anytime soon.

    Good wishes

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  2. I agree, my scenario is a bit severe for current circumstances. But, I am merely using previous example(April - June sell-off) before which there were no apparent warnings, just like now. Let's remember that steep sell-offs are products of failed pullbacks. In this particular case, the similarities with April - June sell-off are too close to ignore. Broken uptrend, double top, and if the neckline of double top gives - the rest is history. We need to see how the next few sessions trade to reach the verdict. As to 1300 target... I simply used Fib confluence zone combined with a measured move distance. Those are not on the chart, by the way...

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